With mounting losses and no likelihood of change in the situation it became clear that alternative courses of action to secure the future of BMW were required. Accordingly, Rover Cars was sold to The Phoenix Consortium and Land Rover to Ford in May 2000. The new MINI, launched in summer 2001 is produced by BMW and is built at its Oxford Plant. Equipped with advanced and sophisticated production facilities for the production of all MINI models, the facility represents a significant investment in the UK.
The modern production facility at Hams Hall opened in February 2001, for the production of a new generation of BMW 4-cylinder petrol engines. In 2003 a brand new plant will start production of an all-new Rolls-Royce, with further employment opportunities. In all, BMW employ over 9000 people in the UK at these locations. BMW buys around 30 million worth of components from UK manufacturers each year – a significant inward investment in the UK.
Below is a summary of the BMW Group figures: includes Rover Cars until 9 May 2000 and Land Rover until 30 June 2000 # includes assembly of the F650 at Aprilla S. p. A. until June 1999 The UK Economy Insofar as the ups and downs of the economy are the result of government policy and international economic interaction BMW is affected both by the demand for cars and the exchange rate. In a recession, demand for cars declines which affects all manufacturers, including BMW.
BMW Great Britain, as a company buying in deutschmarks and selling in pounds sterling, is affected (in profitability terms) by the exchange rate. A strong means car prices are higher than surrounding European countries whilst the reverse is true when the pound is weak. Results BMW Great Britain Ltd set up a project team in 1998 in advance of the introduction of the euro in 1999, to ensure the company would be prepared for all the implications arising from its introduction.
Although the company is now fully prepared to deal with the euro and financial information for the company is now published in euros, it is BMW's policy at this stage not to offer dual pricing. Dealerships in the UK will only switch direct to euro pricing when and if the Government make the formal decision to join. BMW (GB) Ltd will then switch to handling all transactions in euros at the same time. However, any customer can pay in euros in the same way as they have been able to pay in any currency in the past. The invoice value would be converted using the daily exchange rate.
The euro has no influence whatsoever on BMW pricing policy – so the introduction of the new currency will not make BMW products or services either cheaper or more expensive. Conclusion From the research and the results I have collected, I have come to the conclusion that the introduction of the euro will have no effect on BMW whatsoever, the prices of their products and services will not be cheaper or more expensive, there fore the company will not benefit and will continue to run the business as it was run before the introduction of the single currency.
Because the company is financially prepared for the introduction of the euro, it is the company policy not to offer a dual pricing system in the UK because they have not joined the euro currency. Dealerships in the UK will only make the switch to euros when the government decides to join.